American Airlines Shares Plunge After Cutting Profit Outlook on Weak Fares
- Earnings to fall short as late 2018 pricing power disappoints
- Bleak update compounds concern from Delta’s warning a week ago
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American Airlines Group Inc. tumbled and pulled other carriers in its wake after saying 2018 earnings were set to fall short of its forecast because of disappointing domestic fares.
The update Thursday compounded a darkening outlook for U.S. airlines as economic uncertainty threatens demand. Delta Air Lines Inc. recently trimmed its forecast for a key gauge of pricing power and set the stage for a gloomy earnings season, which kicks off next week for the major carriers.